London Mayor Josh Morgan seeks $13M in agency savings to cap 2026 tax hike at 5%, but boards warn cuts could threaten services and public safety.
Budget Battle Brews at City Hall
A fiscal standoff is unfolding in London as Mayor Josh Morgan pushes to cap the 2026 property tax increase at 5%, down from the already approved 6.4%. On Wednesday, Morgan called on the city’s boards, agencies, and commissions—including the London Public Library, London Police Service, and Museum London—to identify budget savings. But agency leaders argue there’s little room left to cut without harming services.
Agencies Push Back on Cost-Cutting
Submissions to the budget committee reveal a common refrain: budgets are already stretched thin. London Police Service board chair Ryan Gauss emphasized their limits, stating, “No measures will be adopted that jeopardize service delivery or public safety.” Meanwhile, Museum London executive director Julie Bevan warned that deeper cuts would reduce hours, jobs, and provincial funding opportunities.
Inflation and Policy Pressure Budgets
Agencies like London & Middlesex Community Housing (LMCH) cited increasing operating costs outpacing inflation. LMCH chair Phil Squire pointed to rising expenses for maintenance, insurance, and utilities, while rent revenue remains capped by legislation. Additionally, he said, paying full property taxes on public housing buildings continues to strain the budget.
$13 Million Savings Needed
To bring the tax hike down to 5%, agencies collectively need to trim approximately $13 million. However, many of these organizations say they’ve already engaged in efficiency efforts under the current multi-year budget plan, which was approved early last year with average annual tax hikes of 7.4%. Much of the increase came from a $672 million funding boost for police services.
Political Pressures Mount
Former Mayor Matt Brown noted that council may be responding to increased criticism from residents only now seeing the impact of the tax hikes on their bills. “They’re trying to react to that,” he said. However, Brown also warned against disrupting long-term planning. “The purpose of a multi-year budget is to align strategy with funding. Mid-cycle changes can undermine that stability.”
Final Decisions Still Months Away
While Wednesday’s meeting is a key step, no final decision will be made until November. Mayor Morgan and budget chair Elizabeth Peloza have already asked agencies to revisit their plans, but with few willing to sacrifice services, the city faces tough choices ahead. Whether savings can be found—or services spared—remains to be seen.
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